Health and disability insurance policies or contracts executed or renewed on or after January 1, 2018 are required to provide coverage for health care services for urology that are provided through "telemedicine" (defined as the use of interactive audio, video or other electronic media for diagnosis, consultation or treatment) if the service would be covered were it provided through in-person consultation and if the service is provided to a subscriber receiving the service in Arizona, instead of only in a rural region of Arizona. Effective January 1, 2019. AS PASSED HOUSE.

For the purpose of Board of Pharmacy statutes, the definitions of "full service wholesale permittee," "nonprescription drug wholesale permittee" and "manufacturer" are expanded to include a virtual wholesaler or virtual manufacturer, as applicable, as defined in rule by the Board. AS SIGNED BY GOVERNOR.

A health care institution license issued by the Department of Health Services does not expire and remains valid unless the Dept revokes or suspends the license, or unless the license is considered void because the licensee did not pay the licensing fee before the due date. The Director of the Dept is authorized to establish by rule a licensing fee, including a grace period and a fee for late payments, and to establish a process for the Dept to notify a licensee of the licensing fee due date as well as a process for the licensee to request a different due date. AS SIGNED BY GOVERNOR.

Any summary of benefits, illustration or other similar explanatory document made available by an insurer does not amplify, extend or modify the terms of an insurance policy. If an insurer provides an insured with a copy of a policy that is translated into a language other than English, the English language version of the policy is the binding contract between the parties. AS PASSED HOUSE.

The Department of Health Services is required to monitor the Centers for Medicare and Medicaid Services hospital inpatient quality reporting and value based purchasing programs for changes to measures of timely and effective care that include offering the influenza vaccination and assessing the status of patients who are at least 65 years of age. AS PASSED HOUSE.

Establishes a 15-member Task Force on Health Care Professional Workforce Data to research and make recommendations for the establishment of a resource center for the collection of data concerning the health care professional workforce. The Task Force is required to submit a report of its findings and recommendations to the Governor and the Legislature by March 1, 2018 and self-repeals July 1, 2018.

Exempts disability income from statute requiring disability insurance contracts and policies issued, delivered or renewed on or after July 1, 2017 in Arizona to provide coverage for lawful health care services provided by a health care provider to a subscriber regardless of the familial relationship of the provider to the subscriber if that service would be covered were it provided not a subscriber who was not related to the provider. AS SIGNED BY GOVERNOR.

If a commercial insurer owed the insured unearned premium, the notice of cancellation and any refund of unearned premium may be mailed separately, but must both be mailed at least 45 days before the effective date of the cancellation. AS SIGNED BY GOVERNOR.

The requirements for fees to be exempt from the prohibition on insurance producers charging or receiving any fee or service charge in addition to the premium are modified, including by prohibiting the fee or service charge from duplicating or increasing any fee or service charge included in the insurer's rate filing. The Dept is authorized to order an insurance producer to refund all or part of a fee or service charge that the Dept determines failed to comply with the requirements. Insurance producers are prohibited from charging or receiving any fee or service charge in connection with the transaction of life, annuity, long-term care or Medicare supplement insurance. Contains a legislative intent section. AS SIGNED BY GOVERNOR.

On the renewal of a semiannual motor vehicle liability policy, the Department of Insurance is required to charge the insured a fee in an amount determined by the Director, to be deposited in the Arizona Highway Patrol Fund. The total amount of the fees is required to cover the projected annual budget for the highway patrol division of the Department of Public Safety. Due to a potential increase in state revenue, this legislation requires the affirmative vote of at least 2/3 of the members of each house of the Legislature for passage.

It is unlawful for any person, including any health care provider, health care facility or structured sober living home to offer or pay, or to solicit or receive, any commission or bonus to induce the referral of patients or patronage to or from a health care provider, health care facility or structured sober living home. Some exceptions. Violations are a class 3 (mid-level) felony if the consideration has a value of $1,000 or more, a class 4 (lower mid-level) felony if the consideration has a value of more than $100 but less than $1,000, and a class 6 (lowest) felony if the consideration has a value of $100 or less.

Adds an article of statute to Title 20 (Insurance) regulating mutual holding company reorganization. Requires the Director of the Department of Insurance to approve reorganization plans. Establishes requirements for the contents of reorganization plans and a process for plan review and approval, including a hearing.

Dispensing opticians and optical establishments are not required to be licensed and must post in a conspicuous location a sign that states "optical services offered by (dispensing optician's or optical establishment's name) are not regulated by this state." Various statutes relating to the licensing of dispensing opticians are repealed. Due to voter protection, one section of this legislation containing conforming changes only requires the affirmative vote of at least 3/4 of the members of each house of the Legislature for passage.

For the purpose of statutes requiring the Department of Insurance to approve certain insurance forms, "advertising matter" and "sales material" do not include a specified list of materials, including web pages and web banner advertisements and social media sites and content, and those materials are not required to be filed. AS SIGNED BY GOVERNOR.

No later than 12 months after the effective date of this legislation, a health care entity that does not provide certain health care services based on the entity's religious beliefs is required to adopt a policy that provides a complete list of health care services that the entity will not provide to patients, before treatment is initiated, and the patient or patient's representative must acknowledge receipt of the notice. No later than 18 months after the effective date of this legislation, group health plan providers and health insurers are required to provide enrollees with a list of any health care entity within the provider's or insurer's network that does not provide certain health care services based on religious beliefs.

Health and disability insurers that issue policies, contracts, plans, coverages or evidences of coverage and that hold a certificate of authority in another state are authorized to issue health or sickness insurance in Arizona, and a person is permitted to purchase a policy, contract, plan, coverage or evidence of coverage if the insurer provides evidence to the Department of Insurance that the insurer is subject to the jurisdiction of another state's insurance department and is required to maintain financial reserves of not less than the amount required in Arizona. Any policy, contract, plan, coverage or evidence of coverage issued under these provision must meet the benefit requirements of Arizona. Severability clause.

Adds an article of statute to Title 20 (Insurance) regulating mutual holding company reorganization. An Arizona domiciled mutual insurer is authorized to reorganize into a mutual holding company. Requires the Director of the Department of Insurance and at least 2/3 of "eligible members" (defined) to approve reorganization plans. Establishes requirements for the contents of reorganization plans and a process for plan review and approval, including a public hearing. AS SIGNED BY GOVERNOR.

For motor vehicle liability insurance policies that are issued or renewed beginning on June 1, 2018, the minimum amounts of coverage required are increased to $25,000 for bodily injury to or death of one person in any one accident, from $15,000, to $50,000 for bodily injury to or death of two or more persons in any one accident, from $30,000, and to $25,000 because of injury to or destruction of property of others in any one accident, from $10,000. Does not apply to a policy issued to a person with a valid certificate of self-insurance or partial self-insurance. AS PASSED SENATE.

A person that sells a narcotic or other controlled substance, a prescription-only drug or device, a nonprescription drug, a precursor chemical, or a restricted chemical within or into the state of Arizona is required to hold a valid permit issued by the Arizona State Board of Pharmacy. Violations are subject to disciplinary action by the Board, including a civil penalty of up to $1,000 per violation. AS SIGNED BY GOVERNOR.

Automobile insurance coverage for the repair or replacement of the glass used in the windshield, doors and windows and the glass, plastic or other material used in the lights of a motor vehicle may be subject to a deductible offered by the insurer and selected by the insured. Effective January 1, 2019.

A licensed pharmacist is authorized to dispense a one-time emergency refill of each prescription of a noncontrolled medication used to treat an ongoing medical condition if a list of specified conditions is met. The amount of medication dispensed as an emergency refill cannot exceed a 30-day supply for medications that are prepackaged in a form that prohibits the pharmacist from dispensing a lesser supply, or a 7-day supply for all other medications. The pharmacy is required to maintain a record of any emergency refill dispensed for at least one year, which must contain specified information. A licensed pharmacist who has completed a course of training is authorized to prescribe and administer oral fluoride varnish or tobacco cessation drug therapies pursuant to rules adopted by the Board of Pharmacy. AS SIGNED BY GOVERNOR.

If the Centers for Medicare and Medicaid Services hospital inpatient quality reporting and hospital value-based purchasing programs require the offering of the influenza vaccination and assessing the status of patients who are at least 65 years of age from the timely and effective care measure set, the appropriate legislative committee of reference is permitted to consider whether a change in state law or rule to continue to require hospitals to do so is in the best interest of the public health. Before the introduction of legislation to require hospitals to assess patients who are at least 65 years of age and to offer the influenza vaccination, the appropriate legislative committee of reference is required to consider whether this change is in the best interest of the public health. AS PASSED HOUSE.

The Department of Insurance is required to produce a report on "surprise billing" (defined) by January 1, 2018 and submit the report to the Governor and the Legislature. Information that must be included in the report is specified. The Dept is authorized to contract with one or more entities to produce the report. AS PASSED SENATE.

Beginning on January 1, 2019, expands the list of health care services that health and disability insurance policies or contracts executed or renewed on or after January 1, 2018 are required to provide coverage for to include urology, if those services are provided through "telemedicine" (defined as the use of interactive audio, video or other electronic media for diagnosis, consultation or treatment) and if the service would be covered were it provided through in-person consultation.

Pharmacy benefits managers and other entities that administer prescription drug benefits cannot prohibit a contracted pharmacy from mailing or delivering prescriptions to patients. Pharmacy benefits managers and other entities that administer prescription drug benefits are required to establish a process to update the prescription drug prices used to reimburse a network pharmacy at least every seven days. Pharmacy benefits managers and other entities that administer prescription drug benefits are required to establish and make available a written appeals process that includes a process to appeal, investigate and resolve disputes regarding prescription drug pricing.

Adds an article to Title 20 (Insurance) regulating health insurance out-of-network claim dispute resolution. An enrollee who has received a “surprise out-of-network bill” (defined) and who disputes the amount of the bill may seek dispute resolution of the bill if the amount the enrollee is responsible for is at least $1,000 and other specified conditions are met. If the enrollee requests dispute resolution, the enrollee is required to participate in an informal settlement teleconference and may participate in the arbitration of the bill, and the health care provider and the health insurer are required to participate in an informal settlement teleconference and the arbitration. The Department of Insurance is required to develop a simple, fair, efficient and cost-effective arbitration procedure for surprise out-of-network bill disputes and specify time frames, standards and other details of the arbitration proceeding. The Dept is required to contract with one or more entities to provide qualified arbitrators, and Dept staff are prohibited from serving as arbitrators. Establishes requirements for the arbitration process and qualifications for arbitrators. Does not apply to noncovered health care services, limited benefit coverage, charges for health care services or durable medical equipment subject to a direct payment agreement, health plans that do not include coverage for out-of-network health care services, or state health and accident coverage for full-time officers and employees of the state and their dependents. Any claim that is subject to the out-of-network claim dispute resolution established by this legislation is not subject to current statute governing timely payment of health care provider’s claims. The Dept is required to prescribe a notice outlining a health insurance enrollee’s right to dispute surprise out-of-network bills, and health insurers are required to include the notice in each explanation of benefits or other similar claim adjudication notice that is issued to enrollees and that involved covered services provided by a noncontracted health care provider. By December 31, 2019 and each December 31 thereafter, the Dept is required to report to the Governor and the Legislature on the resolution of disputed surprise out-of-network bills, and information that must be included in the report is listed. Effective January 1, 2019. AS SIGNED BY GOVERNOR.

Establishes a semiannual motor vehicle liability insurance policy fee that insurers are required to pay to the Department of Public Safety (DPS) for every vehicle insured under a motor vehicle liability insurance policy. The fee is in an amount determined by the Director of DPS using a specified calculation in order to cover the required expenses of the DPS Highway Patrol for the next fiscal year, and must be deposited in the Arizona Highway Patrol Fund (AHP Fund). Imposes a fee on any vehicle that does not rely exclusively for propulsion on a source of fuel subject to a motor fuel tax, in an amount that the Arizona Department of Transportation (ADOT) estimates is the average amount of motor fuel taxes paid by an average vehicle during the current fiscal year. Establishes a tax on natural gas in any form that is used in the propulsion of vehicles on public streets, roads and highways, in an amount determined by ADOT using a specified calculation so that the amount of the tax paid is as nearly as equivalent as possible to the tax that would be paid if the vehicle used motor fuel or use fuel. Adds a vehicle license tax rate of an unspecified amount (blank in original) for the first 12 months of the life of a vehicle, and an unspecified amount (blank in original) for each succeeding 12-month period, both for the AHP Fund. Due to a potential increase in state revenue, this legislation requires the affirmative vote of at least 2/3 of the members of each house of the Legislature for passage.